Geopolitical storm brewing in West Asia could lead to a shaky start for Indian benchmarks Sensex and Nifty, as Israel escalates with strikes on Iran. Reports of blasts in Tehran have sirens wailing across Israel, with defense forces on high alert for counterstrikes.
Analysts downplay doomsday scenarios, expecting measured weakness over outright crash. Friday’s bloodbath has tempered expectations, fostering a wait-and-watch approach among bulls and bears alike.
‘Dalal Street will trade in a narrow range initially, pending updates on US-Iran talks,’ opined market veterans. Heightened risks typically boost safe assets, squeezing equities temporarily.
Technicals paint a gloomy picture: Nifty’s four-day losing streak and sub-200 EMA close signal brewing trouble. Traders mark 25,300 as resistance, with 25,000 support pivotal for recovery hopes.
Breaking lower could unleash selling cascades, while resilience above key levels might herald stabilization. Oil-sensitive sectors brace for volatility amid surging crude, impacting inflation outlooks.
Investors should prioritize liquidity and blue-chips, steering clear of high-beta plays. As the world watches the Israel-Iran chessboard, Mumbai’s markets navigate uncharted waters with bated breath.